This book aims to highlight the particular situation faced by certain hydropower companies by the fact that they cannot fulfil their contracts due to force majeure. The first part of this book will be an analysis of how water is used in electricity production. It is important to point out that all types of energy sources use water, to a different extent, of course, and that its spatial and temporal availability is very important. The focus will be on hydropower, presenting the current situation at the global level, and the effect of reducing the amounts of water in the river system.
The second part is based on the presentation of the concept of force majeure and the ways of presenting and drafting it in a contract. Many disputes or the success of a contract depended heavily on the provisions of this article of the contract. Obviously, there are also situations in which the signatory parties abuse or are not protected by these provisions of force majeure. Starting from a few brief examples from the international level, we reach a wide discussion of the situation created in Romania, when the largest supplier of electricity produced on the basis of water terminates several contracts invoking force majeure. The manner in which the opinion of the parties involved is presented to the court is analyzed and presented in detail.
Author(s): Daniel Constantin Diaconu
Series: SpringerBriefs in Water Science and Technology
Publisher: Springer
Year: 2023
Language: English
Pages: 159
City: Cham
Preface
Contents
1 The Energy Context in Romania
1.1 Conclusion
References
2 Water for Energy Versus Energy for Water
2.1 Water for Energy
2.1.1 Electricity Generated by Nuclear Units
2.1.2 Water Consumption in Coal-Fired Power
2.1.3 Water Impacts of Modern Bioenergy
2.1.4 Photovoltaic Installations (Solar Plants)
2.2 Energy for Water
2.2.1 Pumped-Storage Power Plants
2.2.2 Energy for Water Purification
2.2.3 Energy Consumed for Water Used by the End User
2.3 The Economic Relationship Between Water and Energy
2.4 Conclusion
References
3 Energy Sectors that Use Water
3.1 Water Sampling for Energy Production
3.2 Conclusion
References
4 The Context for the Development of the Global Hydropower Sector
4.1 Values of the Hydropower Capacities Installed in the World
4.2 Hydropower, Renewable Energy?!
4.3 Conclusion
References
5 The Impact of Drought on the Hydropower Domain
5.1 Minimum Run-Off Phases
5.2 Minimum Run-Off Indices
5.2.1 Basic Indices of the Minimum Run-Off
5.2.2 Average Flows with Different Frequencies—Calculation Example
5.3 Hydrological Drought Indices
5.3.1 Standardized Flow Rate Index (SFI)
5.3.2 Standardized Groundwater Level Index (SGI)
5.3.3 Standardized Run-Off Index (SRI)
5.3.4 Minimum Run-Off Indices for Drought Fault Finding
5.4 Statistical Methods and Approaches for Assessing the Minimum Run-Off
5.5 Conclusion
References
6 Force Majeure
6.1 Understanding the Concept of Force Majeure
6.2 Force Majeure Versus Pacta Sunt Servanda
6.3 Force Majeure Under Electricity Laws
6.3.1 The Difference Between the Doctrine of Frustration and Force Majeure
6.4 The Drafting of an Effective Force Majeure Clause
6.5 Force Majeure in Practice
6.5.1 What “Circumstances” Could a Force Majeure Clause Activate?
6.5.2 “Reasonable Control”, Causality and Mitigation
6.6 Invoking Force Majeure in a Crisis
References
7 Sample Contractual Provisions in a Force Majeure Contract
7.1 Introduction
7.2 Content of the Force Majeure Clause
7.2.1 Availability of Land and Access
7.2.2 Design Risk
7.2.3 Environmental Risk
7.2.4 Construction Risk
7.2.5 Social Risk
7.2.6 Operational Risk of the Hydropower Objective
7.2.7 Risk of Material Adverse Government Action (MAGA)
7.3 Invocation of the Force Majeure Clause
7.4 Conclusions
References
8 Concrete Cases of Invocation of Force Majeure
8.1 Private Power Producer Disputes British Columbia Hydro's Cancellation of $20 Million in Purchases
8.2 The Destruction of a Dam in Laos
8.3 Oroville Dam
8.4 Vajont Dam
8.5 Conclusions
References
9 Romania, in the European Energy Market
9.1 Energy Market History
9.2 Hidroelectrica Corporation Company, Romania
9.3 The “Force Majeure” Mentioned in Contracts Concluded by Hidroelectrica Corporation
9.4 Conclusions
References
10 Settlement of the Dispute: Case of Hidroelectrica Corporation Invoking the Force Majeure Clause
10.1 Objectives Proposed by the Objectors
10.2 Questions Put Forward by Hidroelectrica Corporation
10.3 Post Factum
References
11 Electricity, Systemic Crises and Environmental Policies
11.1 Today's Energy Challenges
11.2 The Effects of Crises on Electricity Generation
11.2.1 Social and Political Crises
11.2.2 Health Crisis
11.3 Discussions
11.4 Conclusions
References
